India’s purchases of Russian crude oil gathered further momentum in June, with refiners increasing imports as discounted supplies from Moscow continued to remain attractive amid uncertainty caused by the West Asia crisis.

According to data from trade intelligence firm Kpler, Russian shipments to India averaged 2.66 million barrels per day (mbpd) this month, marking a sharp rise of nearly 40% compared to May levels.

Russia now supplies nearly half of India’s crude oil requirements. In May, imports from Russia stood at 1.91 mbpd, while earlier in February supplies had come under pressure due to sanctions imposed by the United States.

“India’s imports remained strong through June, supported by continued discounts and steady refinery demand. Russian barrels remain competitive against global benchmarks,” Sumit Ritolia, senior manager for modelling at Kpler told Mint.

“Regardless of whether the US waiver is extended, we expect India’s imports of Russian crude to remain robust, even if not at record-high levels,” said Ritolia.

Russian crude is currently being sold at a discount of around $4-5 per barrel compared with Brent crude, making it an attractive option for Indian refiners. The continuation of imports was aided by the temporary US waiver on sanctions relating to Russian oil purchases during the West Asia conflict, although that exemption expired on June 17.

Higher intake of Russian supplies contributed to an 8% month-on-month increase in India’s total crude oil imports in May.

The trend highlights the extent to which Indian refiners have relied on cheaper Russian cargoes despite geopolitical uncertainties and concerns over sanctions.

The issue has also figured in trade relations with Washington. Last year, the Trump administration imposed an additional 25% “penalty” tariff on Indian exports over New Delhi’s purchases of Russian oil, on top of a separate 25% reciprocal tariff.

Although the punitive levy was removed earlier this year, Trump had indicated that the US could consider bringing it back if India were to “directly or indirectly” resume large-scale imports of Russian crude. How Washington responds to the latest surge in purchases is likely to remain a closely watched issue in the months ahead.